October 17, 2023
ACI Worldwide, a third-party payment processor for clients such as mortgage service provider Nationstar Mortgage (a/k/a Mr. Cooper), has agreed to pay $10 million to all 50 states for its role in a 2021 testing error that impacted 477,000 Mr. Cooper clients nationwide. While testing out a platform being offered to Mr. Cooper clients, ACI accidentally submitted live consumer data into the ACH system, which caused ACI to erroneously withdraw $2.3 billion from consumer accounts through 1.4 million transactions, and consequently caused consumers to incur overdraft or insufficient funds fees. A government investigation ultimately attributed this to ACI’s defective privacy and data security procedures and technical infrastructure. CA AG; DE AG; PA AG; OR AG; VA AG
Tagged in: Cybersecurity and Data Breaches,